General Provident Fund

1. Re-employed pensioners (except those eligible for the Contributory Provident Fund). 

1. Permanent government servants who are residents of India. 

Note: 

1. Government servants required or permitted to subscribe to a Contributory Provident Fund are not eligible to join or continue as subscribers to the General Provident Fund while maintaining their right to contribute to the Contributory Provident Fund. 

1. Temporary government servants working in establishments or factories covered under the Employees' Provident Funds Scheme, 1952, are required to subscribe to the General Provident Fund if they have completed six months of continuous service or worked at least 120 days in six months. This applies even if they have worked in multiple establishments under the same employer. 

1. Private sector employees cannot subscribe to this fund.

Nomination Rules for GPF 

A subscriber must submit a nomination form to the Accounts Officer through the Head of Office at the time of joining the Fund, specifying one or more individuals to receive the Fund balance in case of the subscriber's death before or after the amount becomes payable. Here are  

1. If a subscriber is a minor, the nomination must be made once they reach the age of majority. 

1. Subscribers with a family must nominate only family members, and any prior Provident Fund nomination will be considered valid until a new nomination is made. 

1. The subscriber must specify each nominee's share of the Fund balance if multiple nominees are designated. 

1. Nomination must be made using the prescribed form. 

1. Send a written notice to the Accounts Officer and submit a new nomination to cancel a nomination. 

1. A subscriber can specify that if a nominated person predeceases them, the right passes to another person, typically a family member, and must outline the share for each nominee. 

1. A subscriber can make the nomination invalid under specific conditions or if they acquire new family members. 

1. In case of the death of the nominee or any event that invalidates the nomination, the subscriber must inform the Accounts Officer in writing and submit a new nomination. 

1. All nominations and cancellations take effect on the date received by the Accounts Officer. 

Conditions for GPF Subscription 

The conditions related to GPF subscription are mentioned below: 

1. A subscriber must contribute to the Fund monthly, except during suspension. 

1. A subscriber can choose not to contribute during leave without salary or with leave salary equal to or less than half pay. 

1. A subscriber can pay any arrears in a lump sum or installments, not exceeding the maximum allowable amount if reinstated after suspension. 

1. Group 'C' and 'D' employees of the Survey of India on departmental leave do not need to subscribe during that period. 

1. A subscriber in a seasonal post need not contribute during unemployment. 

1. A subscriber need not contribute during a period treated as "dies non." 

1. To opt out of subscription during certain leaves, an officer who draws their own pay bill must make no deduction in the first bill after leave begins; others must inform their Head of Office before leave starts. 

1. Failure to inform the Office is considered an election to continue subscribing. 

1. A subscriber who has withdrawn their Fund balance under Rule 32 cannot contribute unless they return to duty. 

1. A subscriber must inform the Head of Office in writing if they wish to contribute during the month they quit service. 

Interest on GPF 

The GPF interest rules govern the interest earned on savings under the scheme. The Government of India determines and revises the interest rate quarterly, applying it to the credited GPF balance. The current rate of interest offered to the GPF subscribers is 7.10%. 

Advances from GPF 

Here are the details about the advances from General Provident Fund: 

1. Advance Sanctioning Limit: For specific purposes, a subscriber may receive an advance of up to three months’ pay or 50% of their Provident Fund balance, whichever is lower. 

1. Eligible Uses of Advance: 

1. Medical expenses, including travel costs, for self, family, or dependents. 

1. Higher education expenses (including travel) for self, family, or dependents: 

1. Studies abroad for academic, technical, or vocational courses beyond high school. 

1. Specialized courses in India (minimum three years) like medical or engineering. 

1. Customary expenses for betrothals, marriages, funerals, or ceremonies. 

1. Legal costs for cases involving the subscriber, family, or dependents. 

1. Defense expenses in case of an inquiry for alleged official misconduct. 

1. Purchase of consumer durables like TVs, washing machines, computers, etc. 

1. Travel expenses for pilgrimage or visiting religious sites of significance. 

1. Advance Restrictions: 

1. Unless justified in writing, an advance beyond the limit is not granted. 

1. If a new advance is sanctioned before repaying a previous one, the outstanding balance is added to the new advance, and repayment installments are adjusted accordingly. 

1. Disbursement Process: The advance amount is drawn based on authorization from the Accounts Officer, especially in cases where a final payment request has been submitted. 
   

GPF Deposit Rules 

The breakdown of the rules associated with the GPF deposit process are: 

1. Minimum Contribution: At least 6% of total income must be contributed each month. 

1. Maximum Contribution: Contribution cannot exceed the subscriber's total income. 

1. Monthly Deposits: Contributions must be made every month, except during suspension. 

1. Suspension of Contributions: Contributions are paused during periods of suspension (e.g., disciplinary action or temporary breaks). 

1. Retirement Contributions: Contributions can continue up to three months before retirement or superannuation. 

1. Flexibility: The rules allow for adjustments based on income fluctuations, career breaks, or nearing retirement. 
   

Withdrawal Rules for GPF 

The details about the withdrawal rules for GPF are listed below: 

1. Withdrawals may be authorized by the competent authorities for special reasons, subject to the conditions specified, after 15 years of service or within 10 years of retirement, whichever is earlier. 

1. Purposes for withdrawal include: 

1. Higher education costs (including travel expenses) for the subscriber or their children, both within India and abroad. 

1. Expenditures related to the betrothal/marriage of the subscriber, their children, or any dependent female relative. 

1. Medical expenses, including travel, for the subscriber, family members, or dependents. 

1. Purchase of consumer durables like TVs, washing machines, computers, etc. 

1. During service, withdrawals can also be made for: 

1. Building or acquiring a house, including land or payments to housing authorities. 

1. Repaying loans taken for purchasing or constructing a house. 

1. Buying land for residential construction or repaying loans for the same. 

1. Renovating, adding to, or altering an existing house or flat. 

1. Construction of houses on land purchased for this purpose. 

1. Withdrawals can be made for any purpose without specific conditions within 12 months of retirement. 

1. One withdrawal per financial year is allowed for the Group Insurance Scheme contribution paid by the subscriber. 

Taxation on GPF Contribution 

The details about the taxation rules on GPF contribution are mentioned below: 

1. GPF Taxation Rules: Under Sections 10(11) and 10(12) of the Finance Act 2021, GPF contributions exceeding Rs.5 lakh in a financial year are taxable. 

1. Mandatory Two GPF Accounts: As per CBDT (Central Board of Direct Taxes) guidelines, for accurate tax calculations the employees must maintain separate taxable and non-taxable GPF accounts. 

1. Taxable Contribution Account: Contributions exceeding Rs.5 lakh in a particular financial year are taxable, including interest earned and withdrawals. 

1. Non-Taxable Contribution Account: The contributed amount remains exempted from tax if the closing balance as of 31 March 2024, plus new contributions remain within Rs.5 lakh annually, the amount remains exempted from tax.